In the first quarterly report of 2021, chairman of the Board Jochem Dijckmeester elaborates:
“Our coverage ratio rose as a result of the higher interest rates and the return on our investments in shares. Because of the higher interest rates, we need less cash to be able to pay out the pensions now and in the future. Our bonds lost value due to higher interest rates, but the favourable prices on the stock market successfully compensated for this decline in value.”
“Naturally, we hope that our financial situation will continue to recover in the coming period, but there is still much uncertainty. This also depends very much on the financial and economic consequences of the corona crisis.”
Policy coverage ratio 31 March 2021: 99.1%
The financial situation of the past few months is reflected in the policy coverage ratio, which is a 12-month average. This coverage ratio rose in the first quarter, from 96.3% on 31 September 2020 to 99.1% on 31 December 2021. Here
you can find more information about the development of the policy coverage ratio.
Current UFR coverage ratio as at 31 March 2021: 110.4%
The current coverage ratio increased from 102.5% to 110.4% in the first quarter. This concerns the so-called UFR coverage ratio, which is a snapshot of the position at the end of the month. Here
you can find more information about the development of the UFR coverage ratio.
Return on investments up to and including 31 March 2021: 0.0%
The return on the investments was 0.0% in the first quarter. The investments to hedge the interest rate risk (Matching) showed a -7.2% return in the first quarter. The investments to achieve an extra return (Return), such as equities, yielded a return of +5.7% in the first quarter.
Investment returns defined contribution schemes
The returns on our defined contribution schemes for most age groups were positive in the first quarter: +3.8% for participants aged up to and including 49, +2.5% for participants aged 50-55, +1.2% for participants aged 56-61, and -0.1% for participants aged 62 and over.